In a recent development, the Committee on Public Finance (COPF) has decided to delay the reviewing of the Betting and Gaming Levy (Amendment) Bill for a week. This decision comes as the committee awaits a clear timeline for the establishment of a regulatory authority for casinos.

The COPF held its first meeting of the fourth session of the ninth Parliament on Wednesday, with MP Dr. Harsha de Silva serving as the chairman. During the meeting, Dr. Harsha de Silva highlighted the importance of establishing a regulatory authority for the casino business, which had been previously discussed. The Finance Ministry had prepared a timeline for the regulatory authority, aiming to obtain cabinet approval by January 31, 2023. However, as this approval has not yet been obtained, the COPF concluded that a new timeframe needs to be established.

As a result, it was decided that the COPF will reconvene in one week’s time to consider the Betting and Gaming Levy (Amendment) Bill. This additional week will allow for the necessary preparations to be made regarding the establishment of the regulatory authority.

Furthermore, the COPF granted approval for the regulation under Appropriation Act No. 30 of 2021 during the meeting.

The Betting and Gaming Levy (Amendment) Bill, proposed by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilization, and National Policy, received Cabinet approval in March 2023. The amendment to the Betting and Gaming Levy Act, No. 40 of 1988, had initially been approved by the Cabinet in April of the previous year.

The postponement of the review signifies the importance of establishing a regulatory framework to govern the casino industry effectively. The COPF remains committed to ensuring proper oversight and regulation of betting and gaming activities in the country, considering their impact on the economy and society as a whole.

In a tragic incident this morning, a head-on collision between a private bus and a lorry on the Colombo-Avissawella Road has resulted in injuries to 22 individuals. The Police have reported that among the injured are 20 bus passengers, the bus driver, and the lorry driver.

The accident took place in the early hours of the morning in the Embulgama area of Hanwella along the Colombo-Avissawella Road. Emergency services were immediately dispatched to the scene to provide aid to the injured parties.

Authorities have swiftly responded, and all 22 injured individuals have been rushed to the Homagama and Nawagamuwa hospitals for medical attention. The severity of their injuries is yet to be disclosed.

The Police are currently investigating the cause of the accident to determine the factors that led to this unfortunate collision. Traffic disruptions were reported in the vicinity as authorities worked to clear the wreckage from the road.

1. State Minister of Finance Ranjith Siyambalapitiya says persons who open income tax files under the recent gazette will not be asked questions on tax returns not filed in prior years: the gazette is applicable to doctors, lawyers, vehicle owners and others who have to open income tax files from 1st June 2023 onwards: all persons over 18 years will also have to do so, from next year.
2. ADB DG for South Asia, Kenichi Yokoyama says the ADB is committed to further enhance its support for Sri Lanka: asserts Sri Lanka is now eligible for concessional and market-based financing, technical assistance, policy advice, and knowledge solutions that will address the crisis.
3. Fitch Ratings says weak operating conditions for Sri Lankan insurers raise near-term downside risks to their credit profiles: also says operating risks have risen due to the sovereign’s deteriorated credit profile: asserts the sparse foreign-currency liquidity in the local banking system could limit insurers’ ability to meet foreign-currency obligations.
4. President’s Office says, based on the recommendation of the Cabinet Appointed Special Committee, an agreement was signed between the Govt and RM Parks Inc., in collaboration with Shell for a long-term contract for the import, storage, distribution, & sale of petroleum products in Sri Lanka.
5. Long-standing Governor of the Sabaragamuwa Province Tikiri Kobbekaduwa resigns from his post.
6. Energy Minister Kanchana Wijesekara says 255 Ceypetco dealers failed to maintain minimum stocks for any products last week: instructs CPC to take legal steps against dealers who have violated conditions on agreements.
7. Police say the Court has issued an order preventing NPP leader Anura Kumara Dissanayake & several others from holding protest demonstrations around the Elections Commission office.
8. Parliamentary Business Committee decides to hold a debate on the Anti-Corruption bill on June 21.
9. Airport and Aviation Services Chairman G A Chandrasiri says the Mattala Rajapaksa International Airport is planning several new activities at the airport to boost revenues: such activities to include an aircraft dismantling center, aircraft parking, a maintenance repair & overhaul centre, cargo trans-shipment, Aircraft Dis-assembly and Re-cycling.
10. Opposition Leader Sajith Premadasa says MP Harsha de Silva’s appointment as the Chairman of the Public Finance Committee is welcome, but is a bad precedent as it violates Standing Orders since it was President Ranil Wickremesinghe who had come to Parliament to appoint him to the post.

Sabaragamuwa Provincial Governor Tikiri Kobbekaduwa has informed that he will resign from that position.

Accordingly, he has informed the President in writing that he will resign from that position from tomorrow (10).

Political sources say that a senior member of the United National Party will be appointed for that vacancy.

According to the Department of Meteorology’s weather forecast for Friday (June 09), the south-west monsoon has now settled over the island. As a result, showers or thundershowers are expected intermittently in the Western and Sabaragamuwa provinces, as well as in the districts of Galle, Matara, Kandy, and Nuwara-Eliya.

In specific areas of the Sabaragamuwa Province and the districts of Galle, Matara, and Kalutara, fairly heavy showers exceeding 75mm are anticipated. Additionally, the North-Western province will experience several spells of showers.

During the evening or night, showers or thundershowers will occur in various locations within the Uva province, as well as in Ampara and Batticaloa districts.

Northern and North-Central provinces, along with Hambantota, Puttalam, and Trincomalee districts, should expect strong winds ranging from 40-45 kmph at times.

To minimize potential damages caused by temporary localized strong winds and lightning during thundershowers, the Department of Meteorology urges the public to take adequate precautions.

Colombo (LNW): The eligible beneficiaries of Swarnamahal Financial Services PLC (SFSP) have been informed that the payment of compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will recommence from June 09, 2023 and expected to continue such payments until July 12, 2024, following the cancellation of the financial body’s licence, the Central Bank of Sri Lanka (CBSL) said in a statement today (08).

“The Central Bank of Sri Lanka wishes to inform the eligible depositors/relevant legal beneficiaries of eligible depositors of Swarnamahal Financial Services PLC (SFSP) that the payment of compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will recommence from 09.06.2023 and expected to continue such payments until 12.07.2024. However, in a case of appointment of a liquidator prior to 12.07.2024, by a competent court in respect of the liquidation of SFSP, compensation payment under SLDILSS will be immediately discontinued.

Accordingly, the eligible depositors/relevant legal beneficiaries of eligible depositors who have not yet obtained compensation subject to a maximum of Rs. 1,100,000/= can obtain their claims from any branch of the People’s Bank commencing from 09.06.2023 by producing relevant documents.”

As an extension of the excellent bilateral relations between Sri Lanka and India, cooperation in the area of Defence has continued to grow and strengthen over the years.   In the last decade with the growth and development of your Defence industry, procurement of Defence related hardware from India has added a new dimension to our cooperation, said the State Minister of Defence Hon. Premitha Bandara Tennakoon gracing the Indian Defence Export Promotion Seminar and Exhibition at Hotel Taj Samudra in Colombo, on Wednesday (Jun 07).

Defence Secretary General Kamal Gunaratne was also present at the opening ceremony.

Indian High Commissioner H.E. Gopal Baglay making the opening remarks said that they believe in sharing their experience and growing capabilities with others and that they consider cooperation with Sri Lanka in all domains as invaluable.

Organized by the Indian High Commission, the first of the India – Sri Lanka Defence Seminar and Exhibition is conducted to promote cooperation and collaboration amongst the two countries in Defence equipment.

State Minister Tennakoon also said that he believes this event would provide an opportunity for Sri Lanka to showcase our own indigenously developed defence vehicles by local industries and Sri Lanka armed forces and to interact with relevant Indian entrepreneurs. It is essential for us to remain at the forefront of these developments, continuously modernizing our armed forces to counter emerging threats effectively, he said.

Addressing the gathering over remote technology, the Indian Defence Secretary (Defence Production) Giridhar Aramane said that Sri Lanka is one of India’s major development partners and that it has been an important pillar in bilateral ties.

During the opening session, Army’s Adjutant General Major General Chandana Wikramasingha and Defenec Advisor of the Indian HC Captain Vikas Sood made presentations.

 A Defence Procurement Brochure was presented by the Indian High Commissioner to the State Minister of Defence and Secretary, Ministry of  Defence. 

The Exhibition showcases related products and services of defence industry from India and Sri Lanka.

Chief of Defence Staff Gen Shavendra Silva, Navy Commander Vice Admiral Priyantha Perera, Army Chief of Staff Major General Channa Weerasuriya, Air Force Chief of Staff  Air Vice Marshal Udeni Rajapaksa, Senior DIG Ranmal Kodithuwakku, former Tri Forces Commanders, senior armed forces officers and Indian High Commission officials were also present at the occasion. 

By: Staff Writer

Colombo (LNW): Sri Lanka’s bank may need a 1.4 trillion rupee capital injection after bad loans from a currency crisis and debt -restructure hit their balance sheets, according to an analysis by the International Monetary Fund.

Private sector borrowing from the banking sector continued its dip in April amidst the prevalent high interest rate regime and contraction in the economy.

As per the Central Bank data, outstanding credit extended to the private sector declined by Rs. 43.2 billion in April 2023 to Rs. 7.1 trillion.

Credit to the private sector from the banking sector has been decelerating since June 2022 with the biggest drop of Rs. 107.6 billion in March due to high interest rate environment and downturn in the economy according to analysts.

As at December 2022 the outstanding amount was Rs. 7,426 billion (a peak of Rs. 7.6 trillion in August) as against Rs. 6,981 billion in 2021.

However the Central Bank said last week that the credit to the private sector is expected to gradually increase with the easing of monetary conditions and rebound in economic activity.

On Thursday the CBSL announced a 250 basis points reduction in policy rates, the first downward revision in nearly three years.

Due to the economic contraction, half a million jobs were lost in industry and services and back-up lower-paying agricultural jobs could not compensate for income losses.

Combined with increases in the cost of living, this economic contraction led national and urban poverty to double (to 25 percent) and triple (to 15 percent), respectively. The crisis left 52 percent of the population in estate areas living in poverty, exacerbating spatial disparities, and led to an increase in overall inequality. 

Key downside risks include a slow debt restructuring process, limited external financing support, a sharper global slowdown, and a prolonged recovery from the scarring effects of the current crisis. A lower-level external trade equilibrium could have contagion effects on domestic trade, economic activity, jobs, and incomes.

This and adverse effects from revenue-mobilization efforts could worsen poverty projections. The financial sector needs to be managed carefully, given rising non-preforming loans and large public sector exposures.

The necessary macroeconomic adjustments may initially adversely affect growth and poverty but will correct overall imbalances, help regain access to international financial markets, and build the foundation for sustainable growth.

Mitigating the impacts on the poor and vulnerable remains critical during the adjustment. Reducing poverty requires better-targeted social assistance, an expansion of employment in industry and services, and a recovery in the real value of incomes. On the upside, the government’s reform program, supported by financing from international partners, could boost confidence and attract fresh capital inflows key to restart the labor market and restore livelihoods.

Colombo (LNW): The official exchange rate list of the Central Bank of Sri Lanka (CBSL) today (08) reveals a slight depreciation of the Sri Lankan Rupee against the US Dollar, in comparison to yesterday.

Accordingly, the buying price of the US Dollar has increased to Rs. 285.69 from Rs. 285.56, and the selling price, to Rs. 298.91 from Rs. 298.43.

The Sri Lankan Rupee also indicates depreciation against several other foreign currencies as well.

However, it indicates a slight appreciation against the Swiss Franc and the Gulf currencies.